Nowadays, you would come across several people telling you different things about their vehicle insurance. Despite having same vehicles, their policies can vary depending upon the company which introduce the policies and the type of policy, they hold.
So, Lets go ahead and discuss few most common types of insurance policies:
A) Fully Comprehensive Auto Insurance: This is one of the most expensive, yet common, type of insurance policies. It’s expensive because as the name suggests that this type of insurance covers everything. Be it any repair or a stolen vehicle. And the best part is that you don’t have to show ‘fault’ in order to claim insurance. It’s common because mostly every finance company make it a mandate for car owners to purchase this type of insurance.
B) Third Party, Fire and Theft: This is generally purchased by those who have already paid off their financed amount and still looking for an insurance company to insure their vehicle. This is one of the cheapest auto insurance policies. This type of insurance covers accidents and theft both but you will have to prove the fault in any accident case. If it’s your fault and you meet with an accident, you will be paid. Alternatively, if you are not at fault, insurance company won’t pay you considering the fact the faulty party should pay, which in this case would be the other party you met with accident with. Similarly if you burn you vehicle or damage just your vehicle may be by hitting a barricade or wall, company won’t pay you.
C) Specialized Car Insurance: This type of insurance is generally for vintage types of vehicles, for example you have a very old car, may be 20-30 years old, or may be older and you want it to be covered by an insurance company for any accident or theft, then this type of insurance is what you are looking for. Generally speaking, this includes all the features that of Fully Comprehensive Insurance but it limits you to run your vehicle on roads for more than certain miles as vintage cars are only expected to be out for any kind of rallies, shows or shooting.
D) Business Vehicle Insurance: This type of cheap auto insurance is offered to companies or businesses for the vehicles used for their business purpose or leased vehicles. Companies have choices to choose their premium, number of vehicles to insure type of insurance covered and many other such options.
E) Medical Insurance: In this type of insurance, if owner or other passengers, depending upon who all are covered according to what you choose at the time of taking the policy, are wounded in the accident and require medical attention, Insurance company pays for the medical bills so that if there is any mishap Car owner/driver doesn’t have to be worried about paying those huge medical bills which can make hole in anybody’s pocket.
Except these there are many other auto insurance policy types which vary from place to place, company to company and vehicle to vehicle.